Media Release

Peter Gutwein MP
Shadow Treasurer
Rene Hidding MP
Shadow Minister for Local Government

Thursday 17th December 2009

How our review of Labor’s bungled water and sewerage changes will work

A Hodgman Liberal Government will review the structure and operation of the water and sewerage corporations in Tasmania.

The review is the part of our plan to make water and sewerage services more sustainable.

The review will be overseen by Infrastructure Tasmania, an independent body to be set up by a Hodgman Liberal Government to prepare a Tasmanian Infrastructure Plan.

Infrastructure Tasmania will be asked to establish a 4 member panel, including a representative from the Local Government sector, to prepare a response to the water and sewerage issue by December 2010. This will enable the necessary changes to be made before the beginning of the 2011-12 financial year.

The aim of the review will be to establish a sustainable water and sewerage system based on the following principles:

1. Is affordable for all Tasmanians;
2. Ensures that investment in water and sewerage infrastructure continues responsibly;
3. Protects the interests of Local Government and allows for Local Government to remain the owners of the assets, and have real input, both during the review and into the future.

The review will focus on:

• Whether the current structure to deliver Tasmania’s water and sewerage services is appropriate;
• Whether efficiencies can be derived from the operation of the existing corporations, thereby giving price relief to Tasmanian taxpayers;
• Ensuring the State's water and sewerage reform agenda is aligned with the Federal Government's National Water Reform agenda so that we are ‘best placed’ to receive funding from the Federal Government.
• Ensure that water and sewerage infrastructure is accepted as an integral component of the Tasmanian Infrastructure Plan to enable access to Federal Government infrastructure funds not aligned with the national water initiative.

Unlike Labor, we recognize that the changes to water and sewerage have been bungled and need an immediate comprehensive review now, not in three years time when prices move to full cost recovery.

After the 2010-11 review our aim is that the corporations will not require operating revenues to be propped up by further taxpayer’s funds.

However, to assist corporations through the transitional period, and to ensure that returns to local government are maintained, we will provide transitional funding in 2011/12 and 2012/13 of $9 million.

We will fix Labor’s water and sewerage bungle, and we won’t make you pay through the nose while we do it.